2025 Issue 3 Volume 21 DRIVING BUSINESS SUCCESS BUILDING TRUST A special feature on how CPAs build trust with the public in their roles, guided by their training SECOND OPINIONS Why should employers prioritize accounting and business credentials when hiring? THOUGHT LEADERSHIP Cultivating lifelong financial literacy through play-based learning PLUS: From conceiving an independent regulatory body to now leading it, David Sun’s career has come full circle. The AFRC Chairman on common missteps that can compromise audit quality, and his lifelong love for the profession REINFORCING TRUST FOR HONG KONG
Programme highlights ∙ 5 interactive modules + final online assessment ∙ Earn certifiable digital badges and an e-Certificate to showcase your achievements ∙ 15 CPD hours – fully online A comprehensive programme designed to equip professionals with the skills to implement HKFRS S1 & HKFRS S2, building capacity in Hong Kong’s transition to sustainability reporting Master HKFRS S1 & HKFRS S2 – Be future-ready Enrol now
PRESIDENT’S MESSAGE APLUS DEAR MEMBERS 2025 Issue 3 1 Edward Au, President “ The Institute is advancing the future competitiveness of the city’s professionals... equipping them with crossdisciplinary, sustainabilityfocused skills essential for today’s dynamic global financial landscape.” Over the past quarter, the Institute has made significant strides in engaging stakeholders, nurturing the next generation of talent, and driving the ongoing development of our industry. Through a range of initiatives, we have strengthened connections within our professional community, supported learning and growth opportunities, and advanced key priorities shaping the future of accounting in Hong Kong and beyond. As the designated sustainability disclosure standards setter for Hong Kong, the Institute welcomed the IFRS Foundation’s publication in June of Jurisdictional Profiles on adoption of ISSB Standards, which recognizes Hong Kong’s leadership in aligning local sustainability disclosure standards with the global baseline. Hong Kong stands among the first jurisdictions to set a target for full ISSB Standards adoption, reinforcing its position at the forefront of global sustainability disclosure and market transparency. Building on this momentum, we hosted the inaugural HKICPA Sustainability Forum, supported by CAANZ and ICAEW. Focused on the theme of climate and data readiness for HKFRS S1 & S2, the event brought together CFOs, sustainability leaders, investors, and data experts to explore how climate and nature assessments, backed by strong ESG data governance, are driving meaningful progress and business impact in the profession. Indeed, training remains a cornerstone of our mission, whether it is building capacity in sustainability reporting, or fostering the next generation of CPAs. The Institute is advancing the future competitiveness of the city’s professionals through programmes like the Certificate on Sustainability Reporting and the Certificate in Accounting and Business equipping them with crossdisciplinary, sustainability-focused skills essential for today’s dynamic global financial landscape. Meanwhile, we continue to foster international collaboration and professional mobility through landmark agreements to enhance career mobility and professional opportunities for our members within an increasingly interconnected global accounting environment, reinforcing Hong Kong’s stature as a leading international accounting hub. Read about all these efforts to build capacity and equip our members in this issue’s Institute Insights. Our commitment to nurturing talent and building trust also took us beyond Hong Kong to the rest of the Mainland. The annual visit to Beijing in May brought us to meet with seven organizations, including the Ministry of Finance of the People’s Republic of China, Hong Kong and Macao Work Office of the State Council of the People’s Republic of China, Chinese Institute of Certified Public Accountants. These meetings enabled closer ties with our Mainland counterparts, opening pathways for deeper cooperation and knowledge exchange. In line with this dynamic engagement, we recently signed memoranda of understandings with 10 leading universities across the Mainland. This initiative promotes academic exchange, professional excellence, and will nurture the next generation of accounting talent, seamlessly bridging our professional community across borders. This partnership will facilitate joint initiatives, including the dissemination of exclusive industry insights and Qualification Programme (QP) updates through the New Partnership Scheme, and will facilitate the administration of QP module exemption assessments for designated courses. As we reflect on these achievements, it’s also important to highlight a few recent events that embody our commitment to engaging the profession and our members. Over the past few months, we’ve held several President’s Luncheons to connect with members face-to-face and gather feedback – a vital part of our ongoing improvement. While this year’s sessions have concluded, we look forward to continuing the conversations at the upcoming annual Members’ Forum, further strengthening member engagement and idea-sharing across our community. Building on this spirit of engagement and collaboration, the CPA Sports Carnival 2025, co-organized with the Society of Chinese Accountants and Auditors, brought together over 1,000 accounting professionals and their families at Hammer Hill Road Sports Ground for a day of athletic competitions and wellness activities. Whether on the sports field or through our professional initiatives, the HKICPA community exemplifies the values of perseverance, innovation, and collaboration. Let us continue to harness these strengths to build trust, nurture talent, and drive transformational growth for a vibrant and sustainable future. Thank you for your continued dedication and support.
CONTENTS 2025 Issue 3 NEWS 01 President’s message 04 Institute news 07 Business news FEATURES 08 Coming full circle David Sun, Chairman of the Accounting and Financial Reporting Council, on developing a regulatory framework for sustainability assurance, and lessons from public service 14 In CPAs we trust A series of short articles based on interviews with mostly Institute members, showcasing the various ways the profession builds trust in organizations SHORT PROFILES 28 Q&A with a PAIB Nelly Pai, Managing Director and Head of Hong Kong IPO and Corporate Finance Group at J.P. Morgan 29 Q&A with a PAIP Hazel Yim, Director of Audit and Assurance at Conpak CPA Limited 38 Young member of the month Nicholas Ng, Assistant Tax Manager at CityLinkers Taxation and Accounting Limited COLUMNS 25 Thought leadership: Dr. Heidi Cheng and Chloe Hung The Principal Lecturer (Acting) and Lecturer at the Department of Childcare, Elderly and Community Services of the Hong Kong Institute of Vocational Education (Sha Tin) on financial education at an early age 26 Second opinions Why should employers prioritize accounting and business credentials when hiring? A series of short articles covering the personal experiences of various professionals, from a director at a non-profit to a forensic accountant at ICAC. They discuss how they navigate ethical dilemmas and decision-making, and how a CPA background empowers them to create enduring value 28 Q&A with a PAIB 29 Q&A with a PAIP 14 In CPAs we trust
DRIVING BUSINESS SUCCESS About our name A Plus stands for Accounting Plus. It represents a profession that is rich in career options, stays relevant amid rapid changes, and adds value to business. This magazine strives to present the global mindset and varied expertise of Institute members – Accountants Plus. Editor Gerry Ho Email: gerry.ho@mandl.asia Managing Editor Jemelyn Yadao Registered Office 2/F Wang Kee Building, 252 Hennessy Road, Wanchai, Hong Kong Advertising enquiries Advertising Director Derek Tsang Email: derektsang@mandl.asia ISSN 1815-3380 President Edward Au Vice Presidents Stephen Law Jasmine Lee Chief Executive and Registrar Margaret W. S. Chan Director of Corporate Communications Rebecca Tam Publication Manager Michael Wong Editorial Coordinator Maggie Tam Office Address 37/F, Wu Chung House, 213 Queen’s Road East, Wanchai, Hong Kong Tel: (852) 2287-7228 Fax: (852) 2865-6603 Member and Student Services Counter 27/F, Wu Chung House, 213 Queen’s Road East, Wanchai, Hong Kong Website: www.hkicpa.org.hk Email: hkicpa@hkicpa.org.hk 40 Institute insights: Building accountancy talent and empowering Hong Kong’s future competitiveness How the Institute’s initiatives are shaping the next generation of finance professionals in a sustainable economy SOURCE 30 An overview of the revised HKFRS for Private Entities Accounting Standard W hat are the changes, and how should you prepare? 32 A new HKSA for audits of less complex entities A n overview of the application of the HKSA for LCE 35 Improving IAS 37 for recognizing and measuring provisions A summary of the Institute’s response to the IASB Exposure Draft 36 Technical news 38Young member of the month A Plus is the official magazine of the Hong Kong Institute of Certified Public Accountants. The Institute retains copyright in all material published in the magazine. No part of this magazine may be reproduced without the permission of the Institute. The views expressed in the magazine are not necessarily shared by the Institute or the publisher. The Institute, the publisher and authors accept no responsibilities for loss resulting from any person acting, or refraining from acting, because of views expressed or advertisements appearing in the magazine. © Hong Kong Institute of Certified Public Accountants 2025 Issue 3. The digital version is distributed to over 47,000 members, and around 12,000 students of the Institute and over 2,000 business stakeholders every quarterly.
A delegation from the Institute, led by President Edward Au, Vice Presidents Stephen Law and Jasmine Lee, Immediate Past President Roy Leung, and Chief Executive and Registrar Margaret Chan, visited Beijing on 25-27 May to engage with key Mainland regulatory and professional bodies. The delegation met with seven organizations, including the Ministry of Finance of the People’s Republic of China, Hong Kong and Macao Work Office of the State Council of the People’s Republic of China, Chinese Institute of Certified Public Accountants, China Securities Regulatory Commission, IFRS Foundation Beijing Office, and more. During the visit, insightful discussions focused on key areas including the convergence of Hong Kong and Mainland accounting standards, sustainable development initiatives, talent attraction and nurturing, digital transformation in the profession and strengthening Hong Kong’s role in international accounting affairs. To further strengthen connections, the Institute hosted a reception dinner, bringing together around 80 representatives from regulatory bodies, members, Qualification Programme (QP) graduates, authorized employers and partner universities. The event provided a valuable platform for networking and exchanging insights on supporting members pursuing opportunities in the Mainland. Read the press release to learn more. MRAs with CPA Australia and ACCA renewed The Institute renewed its mutual recognition agreements (MRAs) with CPA Australia and the Association of Chartered Certified Accountants (ACCA) respectively in June, strengthening collaboration between the accounting bodies with the aim of cultivating top-tier accounting talent and advancing the profession. The Institute has held both MRAs with CPA Australia and ACCA since 2000. The new five-year MRA with CPA Australia and the new threeyear MRA with ACCA continues to enhance the professional development mobility of their members. More details about these new MRAs can be found here. New Certificate in Accounting and Business launched The Institute introduced the HKICPA Certificate in Accounting and Business (CAB) on 30 June, a NEWS Institute news Business news 4 2025 Issue 3 Institute delegation visits Beijing to strengthen ties The Institute’s leadership delegation met with Ministry of Finance of the People’s Republic of China, as part of a visit to Beijing on 25-27 May to engage with key Mainland regulatory and professional bodies.
APLUS new initiative designed to meet the growing demand for interdisciplinary and professional accounting talents. “While accounting is often referred to as the language of business, the professional knowledge it provides is a critical skill for strategic decisionmaking. HKICPA has been keeping pace with the times by proactively motivating the accounting profession to upgrade and transform. Through the CAB, the HKICPA strives to equip individuals from diverse academic backgrounds with solid accounting and business knowledge, thereby expanding the pool of accounting professionals, filling the market needs for interdisciplinary and novel types of talents, and further strengthening Hong Kong as an international financial centre,” said Institute President Edward Au. Visit the dedicated website and read the press release to learn more. Institute launches Certificate on Sustainability Reporting In July, the Institute launched the HKICPA Certificate on Sustainability Reporting, a comprehensive programme designed to equip professionals with the skills to implement HKFRS S1 and HKFRS S2 for sustainability and climate-related disclosures, which take effect from 1 August 2025. The certificate includes expert-led modules on materiality assessment, scenario analysis, greenhouse gas emissions, stakeholder engagement, and integrating sustainability into financial and risk management practices. A limited-time discount of HK$1,000 on the enrolment fee is available until 31August. Practical insights on implementing HKFRS S1 and HKFRS S2 were covered in the first HKICPA Sustainability Forum, which also took place in July, and brought together an inspiring lineup of chief financial officers, sustainability leaders, investors, and data experts. Jurisdictional Profiles on ISSB Standards adoption welcomed The Institute welcomed the IFRS Foundation’s publication of Jurisdictional Profiles on Adoption of ISSB Standards, which recognizes Hong Kong’s leading progress in aligning the local sustainability disclosure standards with the corresponding global baseline. According to the Profiles, Hong Kong has been confirmed to be among the first jurisdictions having set a target of fully adopting the ISSB Standards. Read the Institute’s press release here. As a member of the A4S Accounting Bodies Network (ABN), the Institute has also endorsed five new ABN principles, which will guide how the profession addresses today’s sustainability challenges and opportunities. Institute collaborates with Mainland universities to cultivate talent The Institute in July signed a memorandum of understanding for the cultivation of accounting professionals with 10 universities, including Nankai University, Huazhong University of Science and Technology, Xiamen National Accounting Institute, China University of Political Science and Law, Beijing University of Technology, Liaoning University, Tianjin University of Finance and Economics, Jilin University of Finance and Economics, Guangdong University of Finance and Economics, and Shenyang Agricultural University. These strategic partnerships will launch initiatives focused on accounting talent development, including providing the latest industry insights and information on the QP through the New Partnership Scheme, co-hosting seminars on career development planning and QP, and conducting QP module exemption assessments for nominated courses. Launched in 2024, the scheme expands the Institute’s network with Mainland universities, fostering globally recognized accounting professionals. Under this initiative, the Institute will conduct QP module exemption assessments for nominated university courses, facilitating eligible students to undertake the QP. Read the press release here. CPA Sports Carnival 2025 The CPA Sports Carnival 2025, co-organized by the Institute and the Society of Chinese Accountants and Auditors, was held on 17 May. This flagship annual event of the accounting profession attracted over 1,000 sports enthusiasts from more than 40 accounting organizations, joined by their family and friends, showcasing the vibrant spirit of the profession. With the theme “Shared Success, Vibrant CPA” (共享共贏．活力 CPA), this year’s event provided a welcome respite for practitioners to recharge, rejuvenate physically and mentally, and expand their professional networks. View the photo highlights here. Council meeting minutes The abridged minutes from the March, April, May and June 2025 Council meetings are now available. 2025 Issue 3 5
A new initiative designed to meet the growing demand for interdisciplinary and professional accounting talents Why should you apply for CAB ? • Verifiable credentials for future-ready skills • A strategic checkpoint in your career journey • Flexible learning pathways to fit your own pace • Showcase your achievement and elevate your profile Current HKICPA members are entitled to claim your CAB e-credentials until 30 June 2026 Apply now
NEWS Business HK$1.4 trillion Hong Kong’s pension scheme, the Mandatory Provident Fund (MPF), reached an all-time high of HK$1.4 trillion as of June, an increase of 130 percent from 10 years earlier, said Mandatory Provident Fund Schemes Authority Chairwoman and Institute member Ayesha Macpherson Lau. As of end of 2024, around 125,000 MPF members had assets of more than HK$1 million, double the number from five years earlier. Deloitte in the United States updated its well-being subsidy programme, allowing employees to spend up to US$1,000 annually on Lego sets and puzzles, reported Business Insider. The June policy update also includes kitchenware, spa services, personal portable cooling fans and ergonomic pillows. The subsidy is meant to “empower and support your journey toward thriving mentally, physically, and financially and living your purpose,” the policy documents say. 2025 Issue 3 7 73% The percentage of large companies from G20 countries obtained assurance on their sustainability disclosures in 2023, up from 69 percent the previous year, according to The State of Play: Sustainability Disclosure and Assurance, (Five-Year Trends and Analysis, 2019-2023), a report by IFAC and AICPA & CIMA. Audit firms lead in providing assurance (55 percent), as opposed to other service providers, with notable increases in Singapore, South Africa, the United Kingdom, and the U.S. The report also notes that certain jurisdictions had double-digit increases in sustainability assurance in 2023, including Hong Kong. The amount raised by life and health insurance company FWD Group Holdings in its Hong Kong IPO. Shares of FWD Group closed up 1 percent in its Hong Kong trading debut on 7 July. After the IPO, CEO Huynh Thanh Phong said FWD would continue to focus on Asia, the fastestgrowing insurance market worldwide. The number of banks that the Hong Kong Monetary Authority (HKMA) took disciplinary action against for anti-money laundering control failures. Indian Overseas Bank, Hong Kong Branch faced an HK$8.5 million penalty and a reprimand for deficient transaction monitoring and oversight. The other two banks, Bank of Communications (Hong Kong) Limited, and Bank of Communications Co., Ltd., Hong Kong Branch, were fined HK$4 million and HK$3.7 million, respectively, for failing to monitor certain transactions effectively. 3 APLUS HK$3.47 billion – Financial Secretary Paul Chan in his weekly blog. Driven by robust exports, private consumption, and mega-events, Hong Kong’s gross domestic product is expected to maintain growth for the second quarter, marking a 10th consecutive quarter of year-on-year expansion, Chan noted. “Economic transformation and upgrading is a continuous process. As long as we stay confident, make use of the country’s development strengths and policy support, and push for diversified and high-quality growth, Hong Kong’s economy will gain momentum and benefit its people.” 90-100 The number of initial public offerings (IPOs) PwC forecasts for this year, with total fundraising projected to exceed HK$200 billion. Hong Kong’s IPO market rebounded significantly in the first half of 2025, as a growing number of A-share listed companies sought listings in Hong Kong. Rising investor demand for core Chinese assets also drove market activity. “We expect 2025 to be the most active fundraising year for IPOs in the past four years,” said Diamantina Leong, PwC Hong Kong Capital Markets Services Partner. 1 August The date Hong Kong’s Stablecoins Ordinance will take effect, which requires issuers of fiat-referenced stablecoins in Hong Kong, or those pegged to the Hong Kong dollar, to be licensed by the HKMA. The banking regulator is likely to issue its first stablecoin licences by early 2026, with applications due by the end of September, SCMP reported. On 29 July, the HKMA published licensing procedures and explanatory notes, as well as two sets of guidelines.
PROFILE David Sun COMING FULL C 8 2025 Issue 3
APLUS As Chairman of Hong Kong’s Accounting and Financial Reporting Council, Institute past president David Sun wants to elevate public trust and inspire a new generation of accountants. He shares the motivations behind the watchdog’s strategic priorities David Sun’s appointment as Chairman of the Accounting and Financial Reporting Council (AFRC) on 1 January 2025 marked the culmination of a career that spans continents, decades, and milestones in Hong Kong’s accounting landscape. In some ways, his journey with the AFRC began more than 20 years earlier – when he led discussions that laid the groundwork for today’s independent accounting regulatory body. “It was quite a coincidence in the sense that it has come full circle. We started with the idea of creating an independent regulatory body, and two decades later I became chair of this body,” Sun reflects. The AFRC, formerly known as the Financial Reporting Council (FRC), was established by the Hong Kong government post-Enron in December 2006. It evolved significantly following regulatory reforms in 2019, becoming what Sun calls a “full-fledged regulator of the accounting profession,” shifting the profession from self-regulation to independent oversight. For Sun, this evolution has deeper roots. In 2003, during his tenure as President of the Hong Kong Institute of CPAs and before the FRC was formed, the government approached the Institute to consider how best to preserve the independence and trustworthiness of the accounting profession, amid the global shift Photography by Jocelyn Tam Interview with David Sun, Chairman of the Accounting and Financial Reporting Council CIRCLE 2025 Issue 3 9
PROFILE David Sun towards independent oversight. “The Council met several times to discuss and reaffirm the importance of maintaining public trust and recommended that the government appoint independent members to the Council, which is still in place today. We also recommended setting up an independent body, which was later named the FRC to investigate improprieties. Thus, one may say that the Institute and the AFRC essentially share the same objective: to promote quality and develop the accounting profession. Sun’s aspirations as Chairman stem from a career-long love for accounting. “I fell in love with accounting in college and have benefited immensely from a fulfilling career with a global firm. To any young person today, I would say: this is a great profession to join,” he says. A vision for greatness A top priority for Sun is to push forward the AFRC’s three-year strategic plan, released in March. It outlines four pillars: regulation, development, governance, and organizational effectiveness. Sun sums up its philosophy: “Quality and growth – quality in the work that we do, and growth not only in the work itself but also as individuals and as an industry. That’s what makes accountants great again.” Quality, he emphasizes, is absolutely imperative and nonnegotiable. “The AFRC was set up to ensure the quality in the audit work being done,” he says, drawing on his experience as Director of Audit of the government. “Financial statements and government services need regular health checks to ensure public confidence in the numbers, the processes, and the services.” The AFRC’s enforcement divisions, inspection, investigation, and discipline, play a critical role in ensuring competence, consistency, and conduct in financial reporting and auditing. “We want to guard against the missteps of the ‘head’, ‘hand,’ and ‘heart’ of professional accountants,” says Sun, referring to incompetence, inconsistent service delivery, and ethical lapses that have contributed to audit failures. “Accounting professionals need to foster character and curiosity; build conviction and capability,” he stresses. When it comes to tackling missteps of the “head,” alluding to incompetence, the AFRC collaborates with the Institute to enhance continuing professional development (CPD), ensuring the city’s around 47,000 CPAs remain up to date. According to Sun, “Once you become a CPA, that’s not the finish line. It’s actually the beginning, and it’s important for our professionals to cultivate a growth mindset and continue to be relevant.” Sun indicated that the AFRC is working with the Institute to ensure that the CPD courses address current challenges faced by accounting professionals today, ranging from the integration of technology and AI within the audit processes to building capacity for sustainability reporting and assurance. On the “hand,” consistency, Sun stresses that firms must maintain disciplined and structured practices supported by robust systems of quality management (SQM) that upholds principles and performance at all times. Lastly, he emphasizes the value of the “heart,” referring to character. “Probity is fundamental to accountancy; practitioners are expected to embody integrity, independence, trustworthiness, and accountability. That’s why ethics is a critical part of our training and CPD. Practitioners are reminded that these core values are integral to our profession.” Balancing regulation and development The AFRC also assumes a development pillar, advancing the profession as part of its mandate. This includes publishing inspection findings, encouraging firms to conduct self-assessments, and providing guidance. Although the AFRC holds enforcement power, Sun insists that discipline is about improvement, not punishment. “The motivation behind discipline is to help firms improve and “ Probity is fundamental to accountancy; practitioners are expected to embody integrity, independence, trustworthiness, and accountability. That’s why ethics is a critical part of our training and CPD.” 10 2025 Issue 3
APLUS David Sun was appointed as the Chairman of the Accounting and Financial Reporting Council (AFRC) for a term of two years from 1 January 2025. Upon the start of the new regulatory regime of the accounting profession in 2022, the AFRC has become a full-fledged regulatory and oversight body of the profession with expanded statutory functions. develop,” he says. A crucial part of development is also ensuring auditors possess appropriate capability and capacity. “Auditing a bank is quite different from auditing a trading company. We want to ensure that firms engaged in such work employ specialists with the relevant industry expertise and experience,” says Sun. Recognizing that the AFRC cannot act alone, the governance pillar seeks to strengthen the broader ecosystem – listed company boards, management, independent non-executive directors (INEDs), and investor groups – so that they can ask better questions. The AFRC supports this through workshops and publications, integrating all stakeholders into what Sun calls “the ecosystem that guards quality.” The fourth pillar – organizational effectiveness – focuses on the AFRC’s selfevaluation. “Are we effective? Are we efficient?” Sun says, noting that the regulator is revamping its workflows through technology to enhance its own performance. Building a framework for sustainability assurance The AFRC’s oversight goes beyond red flags. Its mandate also looks to the future, particularly sustainability assurance, where Sun sees the accounting profession playing a significant role. The government has tasked the AFRC with developing a regulatory framework for this area. Interestingly, a recent AFRC study revealed that over half of today’s sustainability reports are assured by engineering firms, many of which have been active in this space since its early days. The same study also revealed disparities in readiness among “ One only needs to follow the flow of money to see that climate change and its associated risks are top of mind for the next generation.” 2025 Issue 3 11
PROFILE David Sun Sun was the Director of Audit of the Hong Kong government between 2012 and 2018. Prior to that, he was Chairman of EY and served as President of the Hong Kong Institute of CPAs in 2003. 12 2025 Issue 3
APLUS The Hong Kong government has tasked the AFRC with developing a new regulatory framework for sustainability assurance, and the regulator recently conducted a survey revealing disparities in readiness among assurance providers. assurance providers. “The Big Four audit firms are better prepared than smaller players,” he notes. The challenge, Sun notes, is integrating this emerging field under a unified and internationally recognized framework while ensuring the market remains accessible to new players. “We inspect accountants but not engineering firms. How we bring the two together is a matter for deliberation,” he says, referring to the AFRC’s upcoming public consultation later this year. Sun observes that the sustainability movement is driven by financial forces, particularly institutional investors who are focused on future proofing their investees’ business models. Another driver is the anticipated “great wealth transfer,” where trillions of dollars will be passed from baby boomers to younger generations who place greater value on clean energy and our planet resilience. “One only needs to follow the flow of money to see that climate change and its associated risks are top of mind for the next generation,” he notes. This shift is expected to influence investment priorities and reshape corporate strategies over the coming decades. Life in numbers and people Sun’s journey into accounting was a gradual realization. “I enrolled in accountancy almost without knowing what it was about,” he recalls. “Then I discovered that numbers tell stories. If you show me your checkbook, I can tell you the kind of person you are. In the same way, numbers tell stories about companies and their leaders.” His fascination deepened at Arthur Young (now EY), where he learned not just accounting and auditing but also how to manage projects, people, and problems, skills that he still applies. Failures shaped him too. “Nobody never fails,” Sun says bluntly. “I failed a few times, but as the Chinese would say, ‘failure is the mother of success.’ I learned to view every failure as an opportunity for growth and development.” As a college student in the United States, Sun spent two summers selling books doorto-door, enduring failures and rejections that taught him resilience. “It thickened my skin and gave me insights into handling failures and criticisms,” he says. A call to public service Sun credits his foray into public service, which began in the late 1980s, to the partners at his firm like Mr. Horace Yao and Dr. Brian Stevenson who encouraged and allowed him to serve not just clients but the community, as well as watching how leaders like Dr. Charles Lee, Dr. Eric Li, and Dr. Peter Wong served. “These men have taught me great lessons about life, work, and society,” Sun says. Serving on boards exposed him to many community leaders as well, offering masterclasses in decisionmaking and expression. “Where else could a 30-something sit up close and personal and learn from wise leaders, listening to them talk and watching how they made decisions? I certainly reaped more than I sowed.” Over the years, Sun has served on boards and committees across government, education, and finance sectors, culminating in serving as the Director of Audit of the government. Staying young Outside the boardroom, Sun keeps fit with jogging, “less for joy, more for wellness,” and enjoys golfing with friends. A Christian, he also engages in Bible studies and spiritual mentorship. He embraces a philosophy of holistic well-being, citing the book Younger Next Year and distilling it into three points: “Eat well, exercise well, and live well with a group of close friends, that will make you younger next year.” While the AFRC’s strategic plan was only published recently, Sun says Chief Executive Officer Janey Lai and her executive team are highly motivated and making steady progress according to the set priorities. His focus now is on effectively executing the plan, fostering collaboration with the Institute and other stakeholders, and restoring trust in the profession. “We see the Institute as our partner,” he says, “and the more we work together, the more we benefit the profession.” “ I failed a few times, but as the Chinese would say, ‘failure is the mother of success.’ I learned to view every failure as an opportunity for growth and development.” 2025 Issue 3 13
SPECIAL FEATURE Building public trust Illustrations by Olga Aleksandrova IN CPAS WE TRUST For Institute members, the CPA training is what shapes their ethics, instilling a mindset of doing the right thing. Professionals in diverse fields, including members, talk to A Plus about their experiences in handling ethical dilemmas, and building trust and transparency in organizations and beyond In the world of business, accountants are often celebrated as the ones who balance the books, advise on strategy, and steer organizations toward growth. Their technical acumen and commercial instincts are critical to success. But behind the numbers lies a deeper, less often told story – of how accounting professionals quietly uphold the very fabric of trust that underpins effective capital markets and fuels investor confidence. This commitment to principle over profit has never been more critical. In an era where artificial intelligence (AI) reshapes decision-making, cryptocurrency challenges traditional frameworks, and public trust in institutions faces constant scrutiny, accounting professionals stand as guardians of transparency and accountability. In today’s complex and evolving business environment, accountants are also doing more than ever before. They are stepping into new industries, grappling with emerging technologies, and solving problems that extend far beyond audit. Yet no matter how their roles expand, it is crucial that their unwavering commitment to integrity in their approach to work remains unchanged. The stories that follow reveal how today’s accounting professionals serve the public interest. From audit partners who risk lucrative contracts to uphold reporting standards, to non-profit finance leaders who transform donor relationships through transparency, to technology experts who ensure ethical principles evolve alongside digital innovation, these individuals demonstrate that wherever their careers take them, their commitment to foundational values goes with them. In doing so, they reinforce the trust that is essential for the profession’s credibility, and continue to contribute to Hong Kong’s financial integrity. 14 2025 Issue 3
APLUS ETHICS IN ACTION Maria Xuereb, Partner Emeritus at Deloitte China, and Chairman of the Institute’s Ethics Committee During an audit, a choice was made by Maria Xuereb and her team between loyalty to the client or loyalty to principle. “There was disagreement with the client regarding the timing of recognition of disposal of a business and the appropriate accounting treatment,” recalls Xuereb, Partner Emeritus at Deloitte China. After thorough consultations with her team, advisory partners, and technical experts, the firm’s stance was presented to the client: “Unless the accounting treatment was remedied, a qualified audit opinion would be issued,” Xuereb says. This resolute position, though it eventually led to losing the client, exemplifies Xuereb’s commitment to ethical standards over business pressures. A common unethical behaviour she has encountered during her 40-year-long audit career related to the manipulation of financial records to achieve a particular outcome. “Such manipulation could arise from inappropriate accounting for unusual transactions, improper valuations of illiquid assets and impairment allowances, with management estimates or biases leaning towards a more favourable outcome,” she explains. When confronted with such behaviour, Xuereb follows a disciplined process: “Fact finding, consultation and communication!” Her methodical approach involves gathering evidence, consulting experts, and escalating issues to senior management or governance bodies when necessary. “In some instances, the audit client would be receptive to our findings and make the necessary adjustments,” she notes, but acknowledges that “with proper consultation 2025 Issue 3 15
SPECIAL FEATURE Building public trust “ Ethics are necessary to ensure accuracy, transparency and trust in the financial reporting, all elements being fundamental for the overall health of the company and vital for investor confidence.” and communication, an ethical outcome could eventually be achieved,” even in challenging cases. Xuereb champions proactive measures to safeguard transparency and honesty in accounting. “I’m a strong supporter of providing learning with real-life case scenarios of ethical dilemmas to staff,” she says, emphasizing the value of practical training. She also advocates for employers to “promote a strong ethics culture and awareness at the workplace and to strengthen their ethics and compliance policies.” She highlights the importance of robust controls, for example, the application of clear guidelines and approval processes for expense claims or overtime, to prevent malpractices. For Xuereb, ethics are the bedrock of the profession. “Ethics have always been critical in the accounting profession since accountants are seen as the financial guardians,” she explains. “Ethics are necessary to ensure accuracy, transparency and trust in the financial reporting, all elements being fundamental for the overall health of the company and vital for investor confidence.” Both her Christian upbringing and CPA training reinforce this ethos, with the latter “clarifying what is the right thing to do in business” through structured guidance on resolving ethical dilemmas. Her role as learning leader and audit quality champion during her tenure at Deloitte honed her ability to implement ethical policies and quality standards. “The firm had in place strong ethics and compliance policies and required all personnel, including partners, to comply with such policies and to complete relevant courses,” says Xuereb. While she retired in 2019, Xuereb continues to promote ethics for the profession and is currently Chairman of the Institute’s Ethics Committee. Her previous involvement in reviewing draft auditing standards or guidelines and her leadership in various committees further sharpened her consensus-building skills, critical for this role, particularly as the committee assists the Institute in developing standards and guidelines on ethics for professional accountants. Outside of that, as a volunteer with charities and NGOs, Xuereb continues to apply her financial knowledge and experience to support vulnerable communities, reflecting her lifelong dedication to doing the right thing. Other than financial matters, she helps in frontline charity work with physically or mentally challenged children. Through her leadership, advocacy, and unwavering ethical standards, Xuereb is supporting the accounting profession’s foundation of trust. Sindy Chan’s journey from auditing to serving Hong Kong’s most vulnerable families reflects her belief that accounting is more than balancing spreadsheets. “At nonprofits, it’s about safeguarding hope. We’re entrusted with the dreams of families and the generosity of those who want to make a difference,” says Chan, Associate Director (Operations) at Children’s Cancer Foundation. Her work ensures that every dollar donated to the Foundation is used thoughtfully, aligning with donor intent and the organization’s mission to support children battling serious illnesses. Prioritizing open and honest disclosure of financial information, Chan views transparency as a “moral obligation” that connects resources to needs and stories to outcomes. “The more clearly we communicate, the better donors and stakeholders understand our work,” she explains. This clarity, she believes, strengthens mutual trust and keeps supporters engaged through mission-driven storytelling that honours their generosity. Chan’s approach to donor engagement exemplifies her ability to adapt accounting principles to non-profit values. Recalling a standout moment, she shares how she guided her team to apply the audit principle of “Know Your Client” to deepen donor relationships. “We are not just doing identity confirmation with new donors – we make the effort RIPPLE EFFECT Sindy Chan, Associate Director (Operations) at Children’s Cancer Foundation, and an Institute member 16 2025 Issue 3
APLUS to understand their industries, philanthropic history, and alignment with our mission of supporting seriously ill children,” she says. By tailoring impact reports to reflect donors’ contributions, Chan has strengthened trust, signalling that the Foundation accepts donations with “thoughtfulness, integrity, and a commitment to long-term mission alignment.” This strategy safeguards the organization’s reputation and encourages greater contributions. Fiscal efficiency is another cornerstone of Chan’s work. She emphasizes cash flow and liquidity as critical to maximizing the Foundation’s impact. “I coach my team to conduct rolling cash flow forecasts, introduce a review on budget-to-actuals in the monthly financial report, and maintain a reserves policy tailored to the organization’s risk exposure,” she says. These practices enable confident planning around impact and growth, ensuring stability for both the organization and the vulnerable communities it serves. Communicating complex financial information to non-financial stakeholders is a challenge Chan meets with creativity. “The key to effective communication lies in simplification,” she says. By using analogies, data visualizations, and mission-driven narratives, she turns dense financial data into accessible insights. “I convert complex financial information into tables with narratives, which eases the management’s review on the financial reports. I also use data visualization with charts to help the general public understand overall funding allocation,” she explains. One of Chan’s notable achievements is her engagement in expanding the Foundation’s drug and treatment sponsorship programme. Leading a feasibility study, she facilitated the board’s evaluation of the programme expansion, while orchestrating workflow design and negotiating payment terms to safeguard the Foundation’s financial stability. “We were able to support more children and cover a broader range of critical treatments,” she says. “It was a powerful reminder that smart finance decisions can directly change lives.” Chan’s CPA training underpins her commitment to ethical decision-making. “Whether reviewing financial information, evaluating internal controls or advising on partnerships, I keep all our stakeholders in mind: donors, communities, and the people we serve,” she says. Guided by her mantra of not just asking “can we” but “should we,” she focuses on ensuring every financial choice aligns with the Foundation’s values. “I speak up about risks, push for transparency, and advocate for accountability – even when it’s hard,” she says. “Because every dollar is someone’s hope, and I take that responsibility seriously.” With her expertise and thoughtful financial stewardship, Chan contributes to the Foundation’s work, helping to improve the quality of life of thousands of young patients and their family members. As digital technologies continue to develop and penetrate into all aspects of people’s lives, creating many opportunities, William Gee is guiding accounting professionals through uncharted ethical waters. After years specializing in the adoption and commercial deployment of emerging technologies, including blockchain and AI, Gee, a retired CPA, is now focused on addressing the ethical challenges they present, such as algorithmic biases, transparency, and accountability. “As AI models improve, and with their real-time data access, errors will be even more subtle and it takes experience to spot it. This is something professionals should be more aware of,” says Gee. A member of the International Ethics Standards Board for Accountants (IESBA) Technology Experts Group (TEG) since 2022, Gee provides critical industry insights to IESBA’s Technology Working Group, ensuring that deliverables reflect the realities of technology adoption across the global accounting landscape. He works closely with other TEG members, professionals of different backgrounds from around the world, helping to shape thought leadership and standards that address local nuances while maintaining universal principles. “In this tech-driven setting, there’s always this discussion on whether the existing framework can continue to apply,” Gee says. “Participation in IESBA very quickly led one to realize that the fundamental principles really haven’t changed. As a professional, you have to follow the same standards to have public trust.” His participation has also enriched his own perspective. “When I joined, I was still working with the firm and provided feedback to our own in-house risk management and compliance teams, informing them what is being discussed, and on the potential issues in the adoption of technology,” says Gee, former partner of PwC Mainland China and Hong Kong. DEFENDING PRINCIPLES IN A TECH ERA William Gee, member of the IESBA Technology Experts Group and an Institute member “ At non-profits, it’s about safeguarding hope. We’re entrusted with the dreams of families and the generosity of those who want to make a difference.” 2025 Issue 3 17
SPECIAL FEATURE Building public trust With ethical considerations in digital technology still at a nascent stage, Gee reflects on the ethical ambiguities he has addressed in the past, particularly around cryptocurrencies. “We had professional ethical guidelines on holding client investments, but it never touched on cryptos,” he notes. “Auditors cannot participate in a traditional share offering, but the guidelines in the early days did not extend to Initial Coin Offerings and other cryptocurrency-related initiatives.” Faced with this gap, Gee and his team at the firm applied fundamental ethical principles to avoid conflicts of interest, demonstrating the importance of principled decision-making in the absence of specific guidelines. “We decided to follow the same principle. It’s not about being conservative; it’s the right approach to safeguard our independence,” he says. Gee has delivered seminars on AI ethics and the IESBA’s technology revisions to the Code of Ethics, including sessions for the Hong Kong CPA community and upcoming talks for ICAEW’s members in North America. He will participate in the Institute’s ethics conference in October. Gee studied accountancy at the University of East Anglia in the United Kingdom. “Accountancy was a science degree offered by the School Information Systems, reflecting the growing importance of information technology for accountants.” He joined Thomson McLintock in Norwich after graduation, which became KPMG. After qualifying as a Chartered Accountant in 1990, he decided to specialize in “EDP Audit” and moved to the firm’s London office. Gee then returned to Hong Kong in 1997 to tackle the Y2K problem and went on to lead a number of major technology initiatives for the Hong Kong government, including the development of the regulatory framework for certification authorities and the Interoperability Framework to support e-Government. These early projects laid the foundation for his later pursuits in emerging technologies. “Technologies enhance our efficiencies and effectiveness, but also bring along changes to business and operational processes. With these changes, a question arises: can we continue to conform to established ethical principles?” says Gee. “The foundational training of a CPA provides you with the knowledge and a set of principles, and I believe this is even more essential today given the pace of technological advances and their far-reaching impact.” For Gee, building public trust in accounting hinges on understanding and explaining technology’s role. “Understand what you are doing, the technology you’re using, and being able to explain that to your team and to your clients, making sure in terms of professional behaviour the team does not blindly rely on the output,” he advises. This critical thinking ensures that accountants uphold their role as trusted advisors, even in a tech-driven era. In McDonald’s Hong Kong, where every decision impacts millions of customers, Carrie Mong, Chief of Staff and Senior Director of Strategy and Insights, stands at the helm of strategic direction. With her CPA training as her foundation, Mong transforms data into strategies that drive financial success, and deepen the trust of McDonald’s vast customer base across 260-plus outlets in Hong Kong. “It’s not just about understanding the numbers, it’s about interpreting what they mean for the business,” she says. This perspective allows her to evaluate performance, assess risks, and guide decisions that balance growth with operational efficiency. “Whether we’re exploring new growth opportunities or improving operations, I ensure our strategies are financially disciplined, deliver reasonable return on investment, and align with long-term value creation,” she adds. For Mong, days working at the quick service restaurant chain are a dynamic mix of strategic planning, data analysis, and cross-functional meetings and discussions. “A key part of my role is translating insights into action – making sure we’re not just collecting data, but using it to drive meaningful decisions,” she stresses. For instance, during a recent strategic pricing review, Mong combined margin analysis with customer insights from conjoint studies and competitive benchmarking. “The analysis revealed where customers were most sensitive to price and where we had room to adjust without compromising our strong value perception,” she explains. “The outcome was a refined pricing strategy that balanced financial performance with our strong value positioning, demonstrating how data-driven decisions can support both business goals and earning customer trust.” The role, she adds, is purpose-driven. And her FROM STRATEGY TO LEADERSHIP Carrie Mong, Chief of Staff and Senior Director of Strategy and Insights at McDonald’s Hong Kong, and an Institute member “ Understand what you are doing, the technology you’re using, and being able to explain that to your team and to your clients, making sure in terms of professional behaviour the team does not blindly rely on the output.” 18 2025 Issue 3
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